Option vol Per Cem Karsen video: What I took away was that by guaranteeing all size bank deposits, the Fed/USTreas have sold OTM puts into the financial system and at the coming meeting will talk tough to continue implicitly sell calls into the financial markets. Wings have been sold therefore guts have been heavy.
I look at it as another piece of the where is the leverage/liquidity puzzle, where is the balloon getting stretched.
Option vol Per Cem Karsen video: What I took away was that by guaranteeing all size bank deposits, the Fed/USTreas have sold OTM puts into the financial system and at the coming meeting will talk tough to continue implicitly sell calls into the financial markets. Wings have been sold therefore guts have been heavy.
https://www.kaivolatility.com/hubfs/media/Macro%20and%20Flows%20Videos/20230421_Macro%20and%20Flows_e16_720p.mp4